Ice Lounge Media

Ice Lounge Media

Fresh off of its success on Election Day, Uber is signaling that it will continue to push laws similar to the Proposition 22 measure approved by California voters that will keep gig workers classified as independent contractors. The ride-hailing company’s ambitions for laws that preserve its business model are global.

Uber CEO Dara Khosrowshahi said Thursday during an earnings call with analysts that the company will “more loudly advocate for laws like Prop 22.” He later added that it will be a priority of the company “to work with governments across the U.S. and the world to make this a reality.”

What “loudly advocating” for might look like is unclear. Prop 22 was backed by Uber and Lyft as well as on-demand delivery companies DoorDash and Postmates. (Uber is in the process of acquiring Postmates). The push to pass the ballot measure and override a bill passed by the California State Legislature that would have forced companies that use gig workers to classify them as employees was an expensive undertaking. Total contributions to Yes on 22 were around $205 million, making it the most expensive ballot measure in California since 1999.

Here’s his complete thought:

Lastly, on Proposition 22, which we are happy to say passed with a healthy margin in California.

This important question has now been settled in the most populous state in the country. California voters listen to what the vast majority of drivers want: new benefits and protections with the same flexibility. Going forward, drivers and delivery people in California will be guaranteed a minimum earnings standard, health care contributions, accident insurance, increased safety protections and more. We feel strongly that this is the right approach, we should be adding benefits to gig work to make it better, not getting rid of it altogether in favor of an employment only system.

That’s why going forward you’ll see as more loudly advocating for new laws like Prop 22, which we believe strike the balance between preserving the flexibility that drivers value so much, while adding protections that all gig workers deserve. Our proposal for a new pragmatic approach is supported by 82% of drivers and 76% of voters. And it’s a priority for us to work with governments across the U.S. and the world to make this a reality.

For now, Khosrowshahi said the company will be focused on complying with Prop 22, which does require an earnings guarantee of at least 120% of minimum wage while on the job, 30 cents per engaged miles for expenses, a healthcare stipend, occupational accident insurance for on-the-job injuries, protection against discrimination and sexual harassment and automobile accident and liability insurance. The earnings guarantees and reimbursement for expenses reflects a driver’s engaged time, not for the time spent between rides or deliveries.

“We are very much focused on the execution of Prop 22 as it relates to our drivers” he said. Khosrowshahi said this could raise rates, but noted that any increases “wouldn’t have a significant effect on trip volumes one way or the other, based on the kinds of sensitivities that we have seen in the past.”

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The DOJ challenges Visa’s acquisition of a fintech startup, Apple releases the latest version of iOS and goPuff acquires an iconic alcohol retailer. This is your Daily Crunch for November 5, 2020.

The big story: DOJ files suit to stop Plaid acquisition

The Department of Justice is challenging Visa’s $5.3 billion acquisition of financial services startup Plaid. There were reports last month that the DOJ was investigating the acquisition, but now the department has actually filed suit.

“By acquiring Plaid, Visa would eliminate a nascent competitive threat that would likely result in substantial savings and more innovative online debit services for merchants and consumers,” DOJ argued.

Visa responded in a statement arguing that the suit shows “a lack of understanding of Plaid’s business and the highly competitive payments landscape in which Visa operates.”

The tech giants

Facebook takes down ‘Stop the Steal 2020’ group organizing around false claims of election chicanery — Facebook has taken down a group that had amassed more than 300,000 members while sharing misinformation and organizing around false allegations of impropriety during the 2020 elections.

Apple releases iOS 14.2 with new emojis and an accessibility feature that locates people with lidar — Among other things, this release introduces more than 100 new emojis.

Review: Microsoft’s Xbox Series X is ahead of its time — This thing has a lot of specs behind it.

Startups, funding and venture capital

Delivery startup goPuff acquires BevMo for $350M — This comes less than a month after goPuff announced a $380 million round that valued the startup at $3.9 billion.

Proctorio used DMCA to take down a student’s critical tweets — A series of tweets by one Miami University student that were critical of a proctoring software company have been hidden by Twitter after the company filed a copyright takedown notice.

Vivid Money raises $17.6M for its European challenger bank — Vivid Money is a challenger bank with a few nifty features.

Advice and analysis from Extra Crunch

Three tips for SaaS founders hoping to join the $1 million ARR club — Building a SaaS company is much, much more difficult if you approach it without a tried and true process.

Implementing a data-driven approach to guarantee fair, equitable and transparent employee pay — The lack of clarity can lead to confusion and negative feelings that affect our productivity and relationships with our employers.

Inside fintech startup Upstart’s IPO filing — The fintech startup facilitates loans between consumers and partner banks, an operation that attracted around $144 million in capital prior to its IPO.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

DOJ says it seized over $1 billion in bitcoin from the Silk Road drugs marketplace — In a statement today, the Justice Department confirmed it seized the 70,000 bitcoins generated in revenue from drug sales on the Silk Web marketplace.

NASA wants new and innovative storytelling tech to document its Artemis moon missions — NASA has issued a new request for proposals from partners that would be able to help it supplement its own storytelling in new and innovative ways.

Mixtape podcast: Wellness in the time of the struggle — Shine co-founder and co-CEO Marah Lidey discusses mental health, venture capital, portfolio diversity and connecting with other founders.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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The election process is working. 

long-building “chaos” narrative being pushed by President Donald Trump suggests that the election is fatally flawed, fraud is rampant, and no institutions other than Trump himself can be trusted. There is no evidence for any of that, and as the election math increasingly turns against him, the actual election systems around America continue functioning well.

Nothing about the 2020 elections is normal, of course, because nothing about 2020 is normal. The fact that the vote count is slower than usual is unavoidably stressful—but it’s also exactly what officials and experts have said for months would happen as every vote is counted. 

“I think how the election process has played out has been remarkable,” says David Levine, the elections integrity fellow at the Alliance for Securing Democracy. “I think the entire country owes a tremendous gratitude to state and local election officials and those that have worked closely with them against the backdrop of foreign interference, coronavirus pandemic, civil unrest, and frankly inadequate support from the federal government. We have an election that has gone reasonably well.” 

By any measure, the 2020 election scores better than any in recent history on security, integrity, and turnout. Election infrastructure is more secure: the Department of Homeland Security installed Albert sensors in election systems, which warn officials of intrusion by hackers, and the National Security Agency has been aggressively hunting hacking groups and handing intelligence to officials around the country. Election officials have invested in paper backup systems so they can more easily recover from technical problems.

There are still weak points, especially with the electronic poll books used to sign voters in and with verifying results when a candidate demands a recount. But more states now have paper records as a backup to electronic voting, and more audits will take place this year than in any previous American election.

The pandemic itself is one reason for these improvements. The increase in mail-in and early voting meant that ballots were cast over a month-long period. That helps security because activity isn’t all focused on a single day, said a CISA official in a press briefing. It gives election officials more time to deal with both normal mistakes and malicious attacks, and any problems that do arise affect fewer voters. And more Americans will want to vote this way in the future, said Benjamin Hovland, the top federal elections official and a Trump appointee.

That means the pandemic that many feared would wreck the election has paradoxically made the system stronger. “All of that uncertainty resulted in tremendous scrutiny and transparency, and most importantly, public education about all of these administrative processes,” says Eddie Perez, an elections expert at the Open Source Election Technology Institute. 

The calls from the president and his allies to stop vote counts can still undermine confidence in the outcome. But so far, few of Trump’s arguments have carried any weight in court. Judges denied or threw out lawsuits in Georgia and Michigan on Thursday. Even calls for recounts look unconvincing right now. Historically, recounts matter when races are within just a few hundred votes in a single state, as in the 2000 election. Right now, all of the half-dozen contested states have margins much bigger than that. 

And while the president’s family and allies have been attacking fellow Republicans for not sufficiently supporting his efforts, several prominent party members have publicly rebuked him for his impatience, including Mitch McConnell, the Senate majority leader. “All things considered, I think that the media and the public are doing a better than average job at remaining patient and resisting inflammatory rhetoric,” says Perez.

“This election is going remarkably well considering the obstacles election officials have faced all year long,” says Mark Lindeman, co-director of the election integrity organization Verified Voting. “Election officials in many states have had to field two entirely new election systems: massive-scale mail ballots where they have handled only a handful in the past, and also reengineering in-person voting to accommodate social distancing. There’s a chaos narrative, but what I see is not chaos. What I see is people working very hard to finish a difficult job.”

On Thursday evening, Trump gave a rambling news conference in which he repeated his many unsubstantiated claims about fraud. Most of the news networks cut away after a minute or two. Even Fox News’s anchors said afterwards that they “hadn’t seen the evidence” for Trump’s claims. The president seemed, they said, to be readying for Biden to be declared the winner—but then to start mounting legal challenges. The counting may be over soon, but the election is far from finished.

This is an excerpt from The Outcome, our daily email on election integrity and security. Click here to get regular updates straight to your inbox.

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